The UK cabinet has agreed to support SME financing in an effort to support export-oriented industries. Five major British banks (Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Santander) have partnered on the deal to provide more finance options to export-oriented, allowing the UK to boost export volumes, create new jobs and spur overall economic growth – in the wake of Brexit. The government’s hope is that UK lenders will expand their working capital loans issuance, plus issuance of debt for international buyers.

This European Investment Fund (EIF) analysis provides an overview of the main markets relevant to EIF, equity, guarantees, securitization, and microfinance. These main markets have been identified by the European Small Business Finance Outlook (ESBFO). Starting with a discussion of the general market environment for SME finance, analysts then look at the main aspects of equity finance and the SME guarantees / securitization markets. Finally, the paper highlights important aspects of microfinance in Europe.

SMEs in India have an option when it comes to securing loans to support their businesses. India's Kinara Capital, a Financial Inclusion Challenge 2017 finalist, uses cash-flow analysis, supply-chain references and psychometric testing to offer loans to small- and medium-sized enterprises without traditional collateral.

OPIC Project Finance Director John Didiuk reflects on his recent attendance at the EBRD’s Annual Meeting and Business Forum in Cyprus, where he joined discussions about the investment climate in Ukraine. Since 2014, OPIC has more than quadrupled its portfolio to support the Ukraine’s growth and stability through greater private sector development. With multiple projects that support lending to local SMEs, OPIC has more than $500 million invested across 16 active projects to access financing.

Business activity in China’s SME sector weakened for the third straight month in June to hit the lowest in 16 months, a Standard Chartered survey tracking more than 600 Chinese SMEs found. Unemployment has increased and SME firms are expected to become unprofitable this year.

It has become difficult for smaller businesses lacking strong collateral to find financial at viable interest rates. Experts say banks are reluctant to extend credit to SMEs, rather they prefer to lend to bigger companies. Beijing is feeling the crunch the hardest, as four-fifths of its work force is SMEs.

The Global SME Finance Forum 2017 will be held November 1-3 in Berlin, Germany. This annual flagship event of the SME Finance Forum, which focuses on “digitization of SME finance,” will convene senior executives from financial institutions, fintechs and regulators from both emerging and developed countries. The two-day conference taking place on November 2-3 will be preceded by a series of study visits on November 1 to best practice institutions in Berlin.